CLEVELAND HEIGHTS -- City Council members have expressed disappointment in the Cleveland Heights-University Heights school board’s failure to finalize a lease agreement with Orthodox Jewish day school Mosdos Ohr Hatorah for the former Millikin School property, nearly a year after a non-binding proposal was approved.

Mosdos has long eyed the 46,555-square-foot Millikin building at 1700 Crest Road, which closed in 2006 as an early childhood center. The $550,000 offer Mosdos made on the property in December 2011 was the highest the district had received since the school board put it up for sale via public auction in 2007.

Months of negations and public discourse followed the school board’s rejection of the offer, with the three parties — Mosdos, the school board and the city — reaching a tentative agreement last August that would allow Mosdos to lease Millikin for 30 years at $1 per year, followed by two consecutive options to renew for additional 10-year terms. Mosdos would be required to perform $1.5 million in permanent improvements to the building within the first 18 months of the lease, and be responsible for all taxes, maintenance, insurance and utilities.

Preliminary plans called for Millikin to house Mosdos’ preschool through eighth-grade boys school, which is currently located in the former Warrensville Center Synagogue, 1508 Warrensville Center Road.

The delay in finalizing the lease came to light publicly during a meeting between council and the school board June 27 to discuss an approximately 6-mill bond issue expected to appear on the November ballot. The bond would raise an estimated $134.8 million to finance a complete overhaul of Heights High School and partial renovations of Roxboro and Monticello middle schools.

“In March 2013, we were notified by Mosdos that a construction cost estimate by its contractor was $3.4 million, apparently greater than Mosdos had anticipated but consistent with estimates that the district had received for renovation of the building,” school board President Ron Register said in a written statement July 1.

“We’ve now been informed that Mosdos would like to change the terms originally agreed upon. We have asked what the new terms would be, and are now reviewing the new terms presented by Mosdos’ counsel.”

That counsel, former Cleveland Heights Mayor Alan Rapoport, confirmed in an email Mosdos has requested “reconsideration of the non-binding letter of intent (for the lease) because of this newly received information about construction costs,” but did not provide details.

“It is fair to say classes will not begin (in Millikin) at the start of the upcoming school year” as had been hoped, he said.

At the June 27 meeting, council voiced frustration with the prolonged negotiations, offering to serve as an intermediary as it did for the preliminary agreement last summer.

“It seems that there should have been a way to work something out in a year,” Councilwoman Cheryl Stephens said.

The school board members were also warned of the possibility of losing voter support for the November bond issue should a positive resolution for Millikin not be reached.

“We need this (Orthodox Jewish) community to feel good about living (in the CH-UH school district),” Councilwoman Bonnie Caplan said.

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